Indonesia, Hungary to set up USD 500 m joint investment fund

Indonesia and Hungary will set up a 500 million dollar investment fund to facilitate Hungarian companies’ participation in the development of transport and water management infrastructure in the Asian country in an organised way, Foreign Minister Péter Szijjártó said on Thursday. Szijjártó held talks with counterpart Retno Marsudi, other government members and businesspeople.

He told MTI by phone that despite the significant distance between the two countries, ties between Hungary and Indonesia developed considerably in recent years.

Several Hungarian technology companies have acquired significant market shares in the southeast Asian country which can boost their income and development potential, as Indonesia’s is the fourth largest population in the world, he added.

Companies offering advanced technology and high value added fared especially well in Indonesia, Szijjártó said. He noted that a Hungarian company was in charge of the introduction the e-toll system in Indonesia. The Budapest Waterworks has carried out a water treatment investment for 36 million dollars, he said. Consultations have started on a new 150 million dollar tied aid credit programme which will involve the installation of Hungarian-made oncology equipment in three public hospitals, he added.

Talks are in an advanced stage on the modernisation of three military hospitals by Hungarian companies, he said. Indonesia plans to implement large infrastructure development schemes in the next few years, Szijjártó said. The joint investment fund will be set up with equal contributions by the two sides and will be managed in Hungary, he added. With the use of the Eximbank credit, Hungarian companies can be involved in some 1.5 billion dollars worth of infrastructure development, he said.

The strengthening of economic ties is demonstrated by the development of trade between the two countries, with turnover totalling an annual 200 million dollars, he said. The government will increase the number of Indonesian students on scholarship in Hungary to 100, he added.

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